12 terms

ch 8 - business markets

business market
often based on l-t mutually profitable relationships

must understand how its product affects other organizations in marketing channel
producer markets
purchase products for making a profit by
1) using it as an input
2) using it for operations
reseller markets
intermediaries that buy FINISHED goods and resells for profit
government markets
contracts are awarded to firms of all sizes, but usually given to large corps.

institutional markets
organiz. w/ charitable, educ., NON-BUSINESS goals.
transactions between businesses
_PRICE_ is VERY IMPORTANT to bus. customers!!~~
they also value service

suppliers must sell products in large Qs to make profits
some need expensive items, while others need sth that is freq. replenished (raw materials)
new-tash purchase
buy item to do new job/solve problem
straight buy repurchase
routine purchase of the same products w/ same contract terms
modified rebuy purchase
new-task purchase changed , or when reqs of straight-buy repurchase is modified
derived demand
D for business products derived from D for consumer products
inelastic demand
D not altered by P incr/decrease
joint demand
2+ items used in combination to produce a product

shortage one 1 will jeopardize sales of the other